Simberi Expansion Faces Funding Delay Amid Tax Assessment Uncertainty
St Barbara Limited reports steady gold production and strong financials while progressing the Simberi Expansion Project, though a PNG tax dispute delays funding decisions.
- Simberi Expansion Project feasibility study on track for Q2 FY26 completion
- Early renewal of Simberi Mining Lease expected imminently
- Q4 FY25 gold production of 14,620 ounces at AISC of A$4,613/oz
- Strong financial position with A$186 million in cash, bullion, and investments, no debt
- PNG tax assessment dispute delaying final investment decision and funding arrangements
Simberi Expansion Project Progress
St Barbara Limited continues to advance its Simberi Expansion Project in Papua New Guinea, with the feasibility study scheduled for completion in the second quarter of fiscal year 2026. The company is also optimistic about the imminent recommendation from the Papua New Guinea Mining Advisory Committee for early renewal of the Simberi Mining Lease, a critical regulatory milestone that underpins the project's future.
Despite the positive momentum, the timing of the final investment decision (FID) has shifted slightly to late Q2 or early Q3 FY26. This delay is primarily due to ongoing discussions with the PNG Internal Revenue Commission regarding amended tax assessments. St Barbara is actively engaging with the commission to resolve this matter, which is essential for securing funding arrangements necessary to progress the expansion.
Operational Performance and Capital Investment
Operationally, Simberi delivered a solid quarter with gold production rising 4% to 14,620 ounces in Q4 FY25, achieving an all-in sustaining cost (AISC) of A$4,613 per ounce. The full fiscal year production of 51,168 ounces aligned well with revised guidance, reflecting consistent operational execution despite challenges such as high rainfall impacting mining activities in June.
Growth capital expenditure in the quarter reached A$13 million, focusing on key infrastructure projects including camp expansion, procurement of a new 5.8MW ball mill, haul road design, and fleet upgrades. These investments are designed to support increased processing capacity and operational efficiency ahead of the expansion project's commissioning phases.
Financial Strength and Strategic Developments
St Barbara maintains a robust financial position with total cash, bullion, and listed investments amounting to A$186 million as of June 30, 2025. Notably, the company carries no bank debt and has no hedging arrangements, providing flexibility as it navigates the next stages of project development.
Meanwhile, the Atlantic Gold projects in Nova Scotia are progressing with prefeasibility studies on the 15-Mile Processing Hub advancing toward completion in Q3 FY26. The company is also evaluating options for the potential separation or divestment of its Nova Scotia operations, balancing strategic priorities ahead of the Simberi FID.
Exploration and Safety Highlights
Exploration activities remain active, with promising high-grade gold intercepts reported from drilling programs at Simberi and surrounding areas. These results support the potential for resource growth and underpin the long-term outlook for the project.
Safety performance continues to improve markedly, with the Total Recordable Injury Frequency Rate dropping to 1.1 by the end of Q4 FY25, a 73% reduction from the start of the fiscal year. Rehabilitation and environmental management efforts are progressing in line with regulatory requirements both in Papua New Guinea and Nova Scotia.
Bottom Line?
As St Barbara navigates regulatory and operational challenges, the resolution of the PNG tax dispute will be pivotal for unlocking the next phase of growth at Simberi.
Questions in the middle?
- How will the PNG tax assessment resolution impact the timing and financing of the Simberi Expansion Project?
- What are the implications of the potential separation or divestment of Atlantic Gold operations for St Barbara’s portfolio?
- Can operational improvements and fleet upgrades at Simberi sustain production growth amid weather-related disruptions?
